Question

Lauren Smith is the controller for Sports Central, a chain of sporting goods stores. She has been asked to recommend a site for a new store. Lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. Lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. Therefore, Lauren recommended locating the new store in her uncle’s shopping plaza. In making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. Did Lauren act in an ethical manner? Why or why not? Explain. What ethical issues can you identify in this situation? If you were in Lauren's position, what would you have done differently and why?

Answer 1

Lauren has done a good Job as She did her research really very well ,Every management desires have more Economical or cheaper Sites for Stores .Lauren has recommended her Uncle's Shopping Plaza Where Customers usually come more to purchase .But she did'nt disclose to the Managemnt about her Uncle (her Relative) - this turns out Lauren to be a less TRANSPARENT Employee but at the same time Efficient and Effective Employee as well.Hence Lauren partially did'nt act ethical.

Here in this scenario ,If I were in the place of Lauren ,even I would have Opted the Shopping Plaza as Lauren did because, its the most Economical Site in Town but, I would have Disclosed about the relationship,this creates a trust and transparent impression over me as an employee.And the Management would always Remember us while taking any such decision in future due to our Honesty and Transparency